Game theory for business

Game theory: The science of strategic decision-making

driving towards you from the opposite direction. You are on a collision course; one person must swerve or both may die in the crash. But if you swerve you are called a chicken or a coward. This scenario where both players prefer not to yield to each other but the worst possible outcome occurs if they don’t, is an important model of conflict in the game theory. Game theory, a branch of mathematics, is the study of strategic decision-making. It is a field which affects every one of us and has wide-ranging applications in the fields of business, politics, economics, computer science, biology and even war. This discipline is used to analyse the decisions rational people make under a framework of strict rules and where each player gets a payoff based on the decisions of all other players. …[READ]

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